Bitcoin Price Analysis: BTC/USD Correction Wave Over


Bitcoin appears to be done with a shallow pullback as price hit resistance at its mid-channel area of interest. If this is enough to keep gains in check, the price could resume the slide to the next downside targets marked by the Fib extension tool.

The 38.2% level is just close by at $3,446 and might serve as the first take-profit point. Sustained selling pressure could take it down to the 50% extension at $3,406 and the swing low or the 61.8% level at the channel bottom.

Stronger bearish momentum might lead to a downside break of support and a slide to the 78.6% level at $3,308 or the full extension at $3,235. The 100 SMA is still below the longer-term 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is more likely to gain traction than to reverse.

However, the gap between the moving averages is narrowing to signal that bearish momentum is slowing. If a bullish crossover follows, Bitcoin might keep on with its rally and test the next upside targets at the 200 SMA dynamic inflection point or the very top of the channel around $3,650.

Stochastic is pointing down, though, so selling pressure may be returning even though overbought conditions haven’t been seen. This oscillator has plenty of ground to cover before hitting the oversold region, which means that bears could have the upper hand for much longer. RSI is also on the move down to indicate that sellers are in control, but this oscillator is nearing the oversold level to show exhaustion.

BTC/USD Chart - TradingView

Bitcoin got a bit of a boost from confirmation that Fidelity would be ready to unveil its institutional platform by March, but this optimism quickly faded and buyers booked profits right away. As in the previous weeks, traders are holding out for actual evidence of volumes picking up or stronger buying interest before sticking to their positions.

Images courtesy of TradingView


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